Why Adidas Lost Germany

Summary

The German football association's switch from Adidas to Nike has sparked a national debate, symbolizing a significant shift in sports marketing. The historic partnership with Adidas, which began with the 1954 World Cup victory, has been a symbol of national pride. However, Nike's superior economic offer and global marketing prowess won over the DFB, signaling a new era in sports sponsorship and reflecting the changing dynamics of brand loyalty and economic interests in the globalized sports industry.

Takeaways

• 🏆 The German football national team's new kit deal with Nike has caused a national crisis, highlighting the deep historical ties between German football and Adidas.
• 🔄 The shift from Adidas to Nike marks the end of a 75-year partnership, which was previously seen as unbreakable.
• 📰 The decision was widely covered by mainstream media, with articles on the topic being the most read and commented on the day they were published.
• 🎖 Adidas' association with German football dates back to the 1954 World Cup, where the founder, Adi Dassler, provided the team with special studs for their boots.
• 💼 Adidas' strong connection to football helped it become the largest sports brand globally, supplying over 60% of national teams in the early 90s.
• 💰 The global sportswear market is worth $300 billion, making sponsorship deals during high-profile events like the World Cup extremely lucrative.
• 📈 Nike's entry into football in the 1990s was strategic, aiming to diversify from its core sports and capitalize on the sport's global popularity.
• 🤝 Nike's innovative marketing strategies, such as the 'Joga Bonito' campaign and partnerships with star players, significantly boosted its football sales.
• 🇩🇪 Nike's acquisition of the German national team sponsorship is a major coup, as it had struggled to establish a strong presence in the German market.
• 💼 The decision to partner with Nike was based on a transparent tender process, with Nike offering a significantly better economic proposal than Adidas.
• 💡 The move to Nike could signal a new era for German football, with the potential for innovative marketing and storytelling to engage fans and grow the sport.

Q & A

Why did the change of the German football national team's kit sponsor from Adidas to Nike cause such a significant reaction in Germany?

The change was significant because Adidas and German football had a long-standing partnership that was deeply ingrained in the national identity. The move was seen as unpatriotic and shocking, causing a national crisis and extensive media coverage.

What is the historical significance of Adidas to German football?

Adidas was founded by Adi Dassler, who provided the German team with special studs during their first World Cup win in 1954. This marked the beginning of a strong association between Adidas and German football, with Adidas becoming synonymous with the sport and contributing to Germany's success in subsequent World Cups.

How did Adidas' relationship with FIFA and other institutions impact its brand?

Adidas' strong ties to football, including its role in commercializing FIFA, helped it become the biggest sports brand in the world. It supplied more than 60% of national teams at the beginning of the 90s, which solidified its position in the sportswear market.

What was Nike's strategy to enter the football market in the 1990s?

Nike's strategy involved signing a $200 million 10-year contract with the Brazilian football federation and adopting a marketing approach that resonated with football culture, such as 'Joga Bonito' and 'The Secret Tournament'. This helped Nike establish a strong presence in football and increase its sales dramatically.

Why was Nike's entry into the German football market challenging?

Nike faced challenges because the German football market was dominated by Adidas, which had a strong, almost untouchable presence due to its historical ties and the loyalty of top players and the German Football Association (DFB).

What factors led to the DFB choosing Nike over Adidas for their new kit deal?

The DFB chose Nike because of its significantly better economic offer, which was reportedly around twice of what Adidas paid. Additionally, Nike's global distribution network and marketing prowess were attractive factors in the decision.

What was the controversy surrounding the DFB's decision to stay with Adidas in 2006?

In 2006, Nike offered more than twice the amount Adidas did for a 10-year deal, but the DFB still chose Adidas. This decision was controversial and went to court due to suspicions of behind-the-scenes influence and potential corruption.

How did the public and politicians react to the DFB's decision to switch from Adidas to Nike?

The public and some politicians, including the Vice Chancellor of Germany, reacted with shock and criticism, labeling the move as unpatriotic and shameful. The decision was widely discussed and debated in mainstream media and social platforms.

What are the key differences between Adidas and Nike's approach to sports marketing?

Adidas is known for its focus on product quality and engineering, often associated with institutions. Nike, on the other hand, is recognized for its storytelling and marketing, focusing on athletes and creating a connection with the audience.

What potential benefits could the partnership with Nike bring to the German national football team?

The partnership with Nike could bring significant financial resources for the development of football in Germany, a global distribution network to increase jersey sales, and innovative marketing strategies that could boost the team's brand and appeal to new fans.

What could be the long-term implications of the switch from Adidas to Nike for both brands?

For Nike, it could mean solidifying its position in the German market and gaining a prestigious asset. For Adidas, it might offer the opportunity to invest in other teams and athletes, potentially leading to a more diversified and competitive portfolio.

Outlines

00:00

🏆 The End of an Era: Adidas Loses German Football Team Sponsorship

The German football national team's switch from Adidas to Nike has sparked a national crisis, with politicians like the Vice Chancellor expressing strong disapproval. This sports marketing deal is unusual in its impact, as it's rarely that such a change is headline news. The German Football Association's decision to leave Adidas, its partner for over 75 years, was met with shock and confusion by some, while others passionately defended the Adidas stripes as part of Germany's national identity. The narrative delves into the historical significance of Adidas in German football, from its founder Adi Dassler's role in the 1954 World Cup victory to its dominance in the global sportswear market. The financial implications of sports sponsorships are highlighted, with the global sportswear market valued at 300 billion and major sporting events offering significant branding opportunities.

05:03

💸 Nike's Strategic Move and the Shift in Sponsorship Dynamics

This paragraph discusses the controversy and implications of the German Football Association's (DFB) decision to switch from Adidas to Nike as its kit sponsor. The move is viewed as a significant financial and strategic play by Nike, which has historically struggled to establish a strong presence in the German market. The narrative explores the history of Adidas's influence and its deep-rooted connection with German football, including its role in commercializing FIFA and dominating the sportswear market. The shift is attributed to Nike's willingness to pay significantly more than Adidas, a move that is seen as overpaying but strategically essential for Nike to secure a foothold in the German market. The summary also touches on the cultural and marketing differences between Adidas and Nike, with Adidas focusing on product quality and Nike excelling in storytelling and athlete association. The potential benefits for all parties involved, including the German national team, are considered, along with the possibility of a future reunion between Adidas and DFB.

Keywords

💡Vice Chancellor of Germany

The Vice Chancellor of Germany is a high-ranking political position in the German government. In the context of the video, the Vice Chancellor is expressing strong opinions against the German football national team's new kit, indicating the depth of the issue's impact on national identity and pride. The Vice Chancellor's words are used to set the stage for the controversy surrounding the team's sponsorship switch from Adidas to Nike.

💡Sports marketing deal

A sports marketing deal refers to an agreement between a sports entity and a company for promotional and financial support. In the video, the term is central to the narrative, as it highlights the unprecedented national crisis caused by the German Football Association's decision to end its long-standing partnership with Adidas and sign with Nike, a move that is typically not a matter of widespread public concern but has become a notable exception in this case.

💡National identity

National identity is the sense of belonging and emotional connection to a nation. The video discusses how the German football team's jersey, traditionally associated with Adidas, is considered a symbol of national identity. The switch to Nike is portrayed as a challenge to this identity, with the jersey's design being a point of contention among politicians and the public.

💡Adidas

Adidas is a global sports brand that has a historical connection with the German football national team. The video emphasizes the brand's significance, dating back to the 1954 World Cup, where the founder of Adidas, Adi Dassler, provided the team with special studs for their boots. This act symbolizes the deep-rooted relationship between Adidas and German football, which is now being disrupted by the new deal with Nike.

💡Nike

Nike is another leading sports brand that, according to the video, has managed to secure a partnership with the German football national team, ending Adidas' long-standing association. Nike's strategy and marketing prowess are highlighted as key factors in their ability to overtake Adidas in various sports markets, and the video suggests that their approach could significantly impact the German football team's branding and public perception.

💡Global sportswear market

The global sportswear market is a vast industry valued at 300 billion dollars, as mentioned in the script. This market is highly competitive, with brands like Adidas and Nike vying for visibility and market share. The video uses this figure to underscore the financial stakes involved in the sponsorship deal between the German football team and Nike, highlighting the economic motivations behind the partnership.

💡Sponsorship

Sponsorship in the context of the video refers to the financial and promotional support provided by a company to a sports team or event. The German Football Association's decision to accept Nike's sponsorship over Adidas' is a pivotal moment in the narrative, as it signifies a shift in the traditional partnership and a potential change in the team's branding and public image.

💡Cultural impact

The cultural impact of the sponsorship switch is a significant theme in the video. It discusses how the partnership between a sports team and a brand can influence the team's cultural narrative and identity. Nike's previous collaborations, such as with the Brazilian national team, are cited as examples of how they have shaped football culture, suggesting a similar potential impact on German football.

💡Economic offer

The economic offer refers to the financial proposal made by a company during a bidding process. In the video, it is mentioned that Nike's offer was significantly higher than Adidas', which influenced the German Football Association's decision. This highlights the role of financial incentives in such partnerships and the potential influence on the association's choice.

💡Transparency and non-discriminatory tender

Transparency and non-discriminatory tender are principles that ensure a fair and open bidding process. The video mentions that the German Football Association's decision to partner with Nike was based on such principles, indicating that their choice was not influenced by favoritism but by the best economic offer, which in this case was from Nike.

💡Patriotism

Patriotism is the love for and devotion to one's country. The video script uses the term to describe the emotional response of some individuals, including the Vice Chancellor, to the change in sponsorship. The concept is tied to the idea that choosing a brand partner based on national origin reflects a lack of understanding of modern, globalized sports.

Highlights

The German football national team's new kit deal with Nike has caused a national crisis and debate, with politicians calling it unpatriotic and shameful.

The German Football Association's decision to leave Adidas for Nike after over 75 years is unprecedented and has drawn significant media attention.

The partnership between German football and Adidas was iconic, with Adidas supplying more than 60% of national teams in the 1990s.

Adidas' founder, Adi Dassler, played a key role in the 1954 World Cup victory, becoming a national hero and establishing Adidas as synonymous with football.

Nike realized the marketing potential of football in the 1990s and aggressively pursued partnerships, including a groundbreaking $200 million 10-year deal with Brazil.

Nike's innovative marketing campaigns, such as 'Joga Bonito', helped them become a major player in football, increasing their sales from $40 million in 1994 to over $2 billion in 2018.

Despite Nike's global success, they struggled to establish a strong presence in the German market, where Adidas held a dominant position.

The German Football Association's decision to partner with Nike was based on a transparent tender process, with Nike offering a significantly better economic proposal.

Nike's offer to the DFB was reportedly around 100 million euros per year, approximately twice what Adidas was paying.

Nike's extensive global distribution network and storytelling capabilities were key factors in their successful bid for the German national team kit deal.

The DFB's decision was influenced by the significant financial difference between Nike and Adidas' offers, making the choice of Adidas potentially corrupt.

Adidas' focus on product quality and engineering contrasts with Nike's emphasis on athlete partnerships and storytelling in their marketing strategies.

The transition to Nike represents a significant change for German football, ending an era of partnership with Adidas and opening up new opportunities for growth and development.

Nike's deal with the German national team is expected to benefit all parties involved, including the brand, the association, and the fans.

The potential for a future reunion between Adidas and the German national team in 2034 when the Nike contract ends adds an interesting perspective to the story.

The shift from Adidas to Nike reflects a broader change in German football, with new leadership seeking the best offers and being willing to make bold changes.

Transcripts

“Unpatriotic, shameful, destroying our home.”

These are the words of the  Vice Chancellor of Germany  

and other politicians. They are not  talking about a war, the climate,  

or racism. But about the new kit of  the German football national team.

It is very rare that a sports marketing  deal is causing a national crisis. Usually,  

those things are not discussed in mainstream  media but only on nerdy YouTube channels.

But the news about the German Football  Association leaving Adidas for Nike - after  

more than 75 years - was even sent as a push  notification by major German media outlets.

Some readers were confused about the relevance  criteria for the breaking news, but the articles  

were the most read and commented on that  day. Many people, like the Vice Chancellor,  

could hardly imagine a German jersey, a piece  of national identity, without the three stripes.

Why is this such a big deal?

Think Michael Jordan and  Nike, Rolex and Wimbledon,  

Red Bull and Formula 1. Some partners just  go hand in hand. German football and Adidas  

was one of those. Nobody thought  this love affair would ever end.

So what happened?

Welcome to Athletic Interest  and how Adidas lost Germany. 

When Germany won its first World Cup title in  1954, coach Sepp Herberger is said to have said  

in the rain in Bern: "Adi, put on the studs" And  Adi Dassler, the founder and namesake of Adidas,  

screwed his special studs onto the football  boots that the whole world would soon be wearing.

The World Cup final became the miracle  of Bern and Dassler became the nation's  

shoemaker, sitting on the coach's bench. This bronze statue of Dassler in front of  

the Adidas World Headquarters  is a reminder of this story.

From then on, Adidas became synonymous  with football. Three more World Cup titles  

followed for Germany, in Adidas shirts. During the 70s, Adidas boss Horst Dassler,  

the son of Adi, played a key role in  commercializing FIFA - from creating  

a television market to arranging  sponsorships and broadcasting  

rights. They basically invented sports  marketing and with it a whole industry.

Its strong ties to football made  Adidas the biggest sports brand in  

the world - and explain why the football map  looked like this at the beginning of the 90s.

Adidas supplied more than 60% of the  national teams, and Nike had none! 

Why does this even matter? Because  there is A LOT of money at stake.  

The global sportswear market is worth 300 billion.

And the World Cup, EURO, or Copa are some  of the world’s biggest sporting events with  

a huge global audience. So having your logo  on the right shirts can mean big business.

That's also what Nike realized  at the beginning of the 90s.

At that time, Nike knew nothing about  football, and football knew nothing about Nike.

But at the 94 World Cup in the US, Nike  Co-Founder Phil Knight saw the Brazilian  

national team take the title in front of a  record-breaking crowd. It made him think. 

After conquering running, tennis, and  basketball by signing the right athletes,  

to become a truly global brand,  Nike had to get into football.

And Knight had a plan. He told  his employees that to understand  

football truly, they had to see the  game through the eyes of Brazilians.

And that's what they did. Two years later,  

a $200 million 10 year-contract was signed in New  York between the Brazilian federation and Nike.

Not only was the deal itself groundbreaking,  

but it was also the way that  Nike activated the partnership.

The Brazil national team  killing time at the “Airport.” 

“The Secret Tournament”, viral Ronaldinhos,  

Joga Bonito, and robots taking over football.  Nike truly left its mark on football culture.

And it paid off…Nike’s football sales  went from 40 million in 94 to more than  

2 billion in 2018 - also thanks to  sponsoring the World Cup-winning  

team in Russia. Nike had gained the  ground to the all-time leader Adidas.

But they never managed to conquer  one market. The largest European  

one. They never really got a hold of Germany.

While Nike grew to become the market leader  and overtook Adidas in more and more sports  

and countries, German football was always  Adidas territory. Adidas and the DFB was  

almost like a holy relationship. The best  players? Ballack, Kahn, Schweinsteiger,  

Lahm, Müller, Neuer. For generations, all  Adidas. The three stripes were untouchable.

So what the heck happened?  How did Adidas lose its edge? 

There is a lot hidden in the  official announcement of the  

DFB. Managing Director Holger Blask said  that partnering with Nike was "the result  

of a transparent and non-discriminatory tender.  Nike submitted by far the best economic offer." 

This might sound like the obvious. How  else would the process have worked?

But it wasn't always like that. The DFB  didn't always go for the best offer.

In 2006, Nike already tried to sign the DFB -  with 500 million euros for ten years. That was  

more than twice the Adidas offer, but somehow the  DFB still stayed with Adidas. The controversial  

decision even went to court because it was  a little bit too obvious that something was  

off - and decision makers influenced (=on  the Adidas payroll) behind the scenes.

It was proof that the power of Adidas,  

also a shareholder of Bayern  Munich since 2002, was too great.

Bayern's CEO at the time said about a  potential signing of the DFB with Nike:  

"I have already told the DFB boss that  our players will no longer be available."

Rumors had it that the old, German  men running the DFB were afraid  

they would have to start speaking  English with their shirt supplier.

Reading the comments of Germany’s Vice  Chancellor, you get the feeling that some  

still live in those times. Thinking that  it is a matter of patriotism when choosing  

the main sponsor shows a complete lack of  understanding of globalized sports in 2024.

It is not about where your brand partner is  from, but what it can do for you. Nike pays  

100m per year according to Handelsblatt,  so around twice of what Adidas paid.

A distribution network of more than 6,000  stores around the world to put your jerseys  

in front of customers helps as well. Or  a storytelling machine that makes people  

queue for your products like a bunch of  sneakerheads for the newest Air Jordans.  

Especially when you have some serious  PR problems (greetings from Qatar).

After all, the DFB is not buying anything. They  are selling. And the American company is willing  

to pay significantly more to be involved in German  football than the German competitor brand. Even  

if the DFB didn't need cash, which they did, it  would've been crazy not to take the Nike offer.

A DFB spokesperson said they wouldn't have left  their long-time partner Adidas for only 2 million  

more a year. But that the difference was so  significant that if they had chosen Adidas  

because of "loyalty and tradition", they would  have probably had the public prosecutor in the  

house the same day for corruption. So they  had no choice but to go for the Nike offer.

Apparently, the Adidas offer was not  competitive. But there is another  

way to look at this. Adidas offered  the market value. But Nike overpaid.

Because the German national team has more value  for Nike than it has for Adidas. Think about the  

portfolio of Adidas and Nike. It's not that  difficult for Adidas to find a replacement  

for Germany. France is up for grabs. And they  are selling more Argentina jerseys anyway.

But Nike never got a hold of the German  market. There are two top tier sports  

marketing assets in Germany that beat  everything else. There is Bayern Munich,  

where Adidas is a shareholder so they are locked  in forever. And there is the German national  

team - that seemed to be locked in forever as  well. Now Nike got the chance - and they took it.

But it wasn't only about the  money. It's worth looking at  

the differences between Adidas and Nike.

Adidas is all about the product.  They're known for good shoes,  

good balls, good apparel.  Typical German engineering.  

But they were always associated with  institutions, from Fifa to the DFB.

Nike on the other hand is associated with  athletes. And known for their marketing rather  

than the technicalities of their products.  They are best at telling good stories about  

their athletes and products. And looking at  players like Florian Wirtz or Jamal Musiala,  

there are a lot of hidden gems to  tell stories about to the world.

Athletic Interest viewers might  know we are a bit biased, but: 

Nike pays twice of what Adidas did. It’s the biggest sports federation  

in the world partnering with the  biggest sportswear brand in the world. 

Nike is among the most popular brands  among Gen Z, the next gen of sports fans.

The deal just makes sense. German football was as encrusted in its structures  

as its team's play at the last two World Cups.  But it looks like now there are people in charge  

going for the best offer and willing to change  things up even when headwinds are to be expected.

It is the end of an era. But  if Nike does only half for the  

German national team of what they did for  the Brazilian national team in the 90s,  

it could be a win-win-win for the brands, the  association - and most importantly, the fans.

Nike finally gets its big asset in the  German market. German football gets more  

money to develop. And even Adidas might be  better off this way, with a free budget to  

spend wisely on other teams and athletes.  Although this one might still hurt a while,  

even the famous Adi Dassler statue  has the DFB crest on its chest…

But who knows: maybe we see a romantic  reunion story in 2034 when the Nike  

contract ends. After all, Germany  has some experience with reunions.